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SCM 300 EXAM 2 MODULES 5-8 QUESTIONS AND ANSWERS
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SCM 300 EXAM 2 MODULES 5-8 QUESTIONS AND ANSWERS
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SCM 300 EXAM 2 MODULES 5-8QUESTIONS AND ANSWERS
4 Retailing Options - Answer -Brick and Mortar: All products and services are sold to
customers from physical stores
•Online or E tailing: All products and services are sold to customers through an online
website
•Bricks and clicks: products can be bought from a physical store or from an online
system
•Clicks and calls: in addition to taking orders via the company website, some companies
will also offer sales via the phone
Omnichannel Retailing - Answer -retailers who fully seek to provide the customer with
seamless shopping experience whether the customer is shopping online from a desktop
or mobile device, by telephone or in a bricks and mortar store.
3 Retail sources of supply - Answer -manufacturers actually create the finished goods.
Retailer responsible for distribution
wholesalers: organizations that purchase goods from manufacturers. Purchase
assortments of goods from many manufacturers, thus a retailer can purchase all goods
from a single wholesaler
drop shippers: manufacturers and/ or wholesalers directly to consumers. Not really a
source of supply
Chargebacks - Answer -penalties charged by retail organizations to their suppliers/
vendors for any number of minor and major supply chain offenses. GOAL to motivate
vendor compliance in the areas of on time shipments, shipment accuracy, product
quality, incorrect packaging, label errors
CPFR (Collaborative, Planning, Forecasting, Rescheduling) - Answer -a formalized
effort by supply chain partners to share data and collectively develop forecasts in an
effort to reduce supply chain costs through better planning
VMI (Vendor Managed Inventory) - Answer -Inventory planning and replenishment
system where supplier(vendor) accepts negotiated
responsibilities that typically include monitoring and restocking.
,Last Mile - Answer -the portion of the supply chain between the final inventory holding
facility and the end consumer
4 Types of Retail ownership - Answer -independents ;one store, one owner. Satisfy
specialized market. EX: family owned corner stores
chains: multiple stores, one owner/company. EX: home depot, walmart, amazon
franchises: Franchisor owns the right to a company and name. Franchisee allowed to
open a store under that name and must abide to the rules and processes. EX:
McDonald's, 7eleven
cooperatives: retailer that is owned by its customer members. Fit special needs of the
consumers. EX: REI (recreational equipment inc)
Prototype Stores - Answer -a series of stores that have common design, construction
and layout. EX: Camry 2014 to Camry 2015, Target 2014 prototype store also a 2010
prototype store
Rationalized Retailing - Answer -retail chains develop rigid control structures to develop
and manage processes such that all the retail outlets are managed in the same way.
EX: a store manager or employee would easily be able to work at almost any store
since everything is done the same way
Planogram - Answer -a map of where every product goes on a retail store shelf
4 Store security issues - Answer -employees, managers, store employees, and
potentially vendors
store assets: inventory, cash, store property
Customers and their assets: store visitors, their cars, and personal property
data: data
Goal of waiting line management - Answer -balance the cost paid by customers (time)
with the cost paid by the company (money paid to maintain the system)
Parts of a waiting line system - Answer -3 parts
input source: population of people that might want service
waiting line: area where customers wait for service
service facility: areas where customer actually receive service
4 Managerial Considerations in Queues - Answer -customers: how many are there?
How quickly they're arriving?
the waiting lines; what type of lines? How many lines?
employees: who's working the system? How many? Skill level and speed?
service facilities: how effective and efficient is the process? Tools?
Basic waiting line terminology - Answer -queue: line
channel: Refers to number lines available at each step
phase: a single step in a process
,infinite population of customers: number of possible customers that may come into the
store is very high ( or unlimited). When a customer enters the system, the odds of
another entering the system are not impacted in any significant manner
finite population of customers: number of customers is limited. EX: a bus company has
10, 1 in repair shop, the odds of another in repair shop decline
balking: when a potential customer sees the line, but never joins the line because they
think it looks too long/ slow
reneging: when a customer joins the line, gets frustrated and leaves the line
Ingredients/goals of a good sales environment - Relationship to SCM: - Answer -Needs
and wants now and in the future. The customers: Product selection, availability,
convenience, value, the 5 senses. The organization: Controlling costs, shrinkage,
profits.
Retail layout considerations Flow - Answer -How do customers navigate through a store
and why?
Considering the entrance and exits points
Product Location: Customer convenience, planograms, perimeter vs. central, where do
you want things located? (high profit items, high theft items, high turnover items)
Grocery store layouts - Answer -Produce(Fruits & Vegetables) Section: Usually first
thing you see upon entering
Meat, Fish, and Poultry at the Rear of the Store
Long Aisles hold smaller per unit profit items
Dairy and Bakery at farthest point from main entrance
Lecture examples of different retail and restaurant layout strategies - Answer -Bar right
in the front of a restaurant. Safeway.
Facilitating goods - Answer -Items that need to be kept in inventory to maintain
operations. Important to customer experience
Dry Cleaners: detergent, hangers, etc
Restaurant: ingredients, tables, plates
What is VMI? (Vendor Managed Inventory? - Answer -When you allow suppliers to
control inventory in your store
Impact of VMI on different stakeholders
Challenges of VMI agreements - Answer -Goal attainment vendor, retailer, customer
Everything must be defined and discussed prior to arrangement
Process related: different ways of getting things done
Schedule related: When should things get done?
Performance and Quality related: Metrics, Motivation, Discipline, Reliability, Consistency
People related: Everyone MUST BUY IN Culture clashes, equity issues, attire,
professionalism.
IT Compatibility, Sharing concerns
, Impact of VMI on different stakeholders - Answer -Common goal, End customer is the
focus (retail consumer)
Learning opportunities: Vendor and retailer learn about each other and their needs.
Vendor has more interactions with end customer in the retail environment.
Retailer: Fewer responsibilities, decreases costs.
Vendor: Better understanding of demand rates, fewer retailer errors, responsive
Importance of waiting lines in running a business - Answer -People demand equality in
America (First come first serve). Waiting times are indicative of overall service
Goals and Tradeoffs for Queuing system - Answer -Goal: To serve people efficiently.
Tradeoffs: Having too many staff and underutilizing them OR having too long a line, and
angry customers. Both lose money
What do managers have control over in a queuing system? - Answer -Time in system
time in queue
Service utilization/service facility
number of servers
what people do while in the line, etc
Why do customers have some degree of control over service rates? - Answer -Some
customers are unprepared, others are ready when they get to the counter.
Arrival and Service Rates: Arrival Rates - Answer -Steady stream of customers? Busy
and slow time periods? Busy and slow days of week? Seasonal trends?
Service Rates: Are all servers equal? Are they motivated? Do they get tired/bored?
Stressed?
What happens if we add more employees?
Full time, part time, seasonal? Experienced?
Type of customers: Prepared/unprepared customer, Big/small orders, high/low
maintenance customers, Paying cash vs. check
Single and Multiple Line Systems;Single - Answer -FCFS, sense of fairness
Multiple: jockeying
Discipline/Priority Rules 1st Come - Answer -1st Served (Burger King)
Earliest Due Date or Shortest Processing Time (Homework?)
Reservations or Appointments Possible? (Restaurants, Homework)
Emergency Situations? (Emergency Rooms)
Preemptive Discipline: Special Rules (VIP lines, Frequent Fliers)
Infinite population of customers - Answer -The number of possible customers that may
come into the store is very high (or unlimited). When a customer enters the system, the
odds of another, the odds of another entering the system are not impacted in any
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